Fed's Balance Sheet at Two-Year Low as Percentage of GDP: Chart

We'll See First Fed Rate Hike in June: KPMG's Hunter

Here’s another possible reason why U.S. economic growth is slowing: The Federal Reserve’s balance sheet is gradually becoming less stimulative, even as policy makers refrain from raising interest rates. Central bank assets stood at about 24.6 percent of gross domestic product as of the end of March, the lowest level in two years, with a balance sheet that’s remained little changed at about $4.5 trillion since late 2014. While the Fed this week reiterated its stance of waiting to shrink the asset stockpile until normalization of the benchmark interest rate is “well under way,” that’s already happening from a gross domestic product perspective.

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